Hillenbrand Reports Fiscal Fourth Quarter and Full Year 2024 Results

Core Insights - Hillenbrand, Inc. reported a Q4 revenue of $838 million, a 10% increase year-over-year, while organic revenue decreased by 1% [1][3] - The company experienced a GAAP EPS of $0.17, down from $0.24 in the prior year, and an adjusted EPS of $1.01, a decrease of 11% [1][4] - For FY 2024, total revenue reached $3.18 billion, a 13% increase compared to the previous year, but organic revenue fell by 5% [1][10] - The company anticipates FY 2025 adjusted EPS guidance of $2.80 to $3.15, with Q1 adjusted EPS expected between $0.52 and $0.57 [1][17] Financial Performance - Q4 total net revenue was $837.6 million, up from $762.8 million, with organic net revenue at $754.8 million, down from $762.8 million [3] - GAAP net income for Q4 was $12.1 million, a 29% decrease from $17 million in the prior year [3][4] - Adjusted EBITDA for Q4 was $143.8 million, a 2% decrease year-over-year, with organic adjusted EBITDA down 13% [5][6] - FY 2024 total adjusted EBITDA was $511.7 million, a 6% increase from the previous year, while organic adjusted EBITDA decreased by 12% [11][12] Operational Highlights - The company generated strong operating cash flow of $167 million in Q4, an increase of $93 million compared to the prior year [1][3] - As of September 30, 2024, net debt stood at $1.69 billion, with a net debt to pro forma adjusted EBITDA ratio of 3.3x [14] - The backlog decreased by 10% year-over-year to $1.68 billion, indicating potential challenges in future revenue generation [7] Segment Performance - Advanced Process Solutions (APS) reported Q4 net revenue of $591 million, a 15% increase year-over-year, but organic revenue decreased by 2% [6][8] - Molding Technology Solutions (MTS) had net revenue of $246.5 million, essentially flat compared to the prior year, with adjusted EBITDA down 8% [8][9] - The company noted that favorable pricing and higher aftermarket parts and service revenue were offset by lower capital equipment volume across segments [3][10] Future Outlook - The company expressed caution regarding near-term revenue outlook due to macroeconomic challenges but remains optimistic about long-term growth trends [2][16] - FY 2025 revenue guidance is projected to decline mid-single digits, primarily driven by the APS segment [16][17] - The focus will be on cost management and operational efficiencies to navigate the uncertain environment while continuing to innovate [2][16]